Everyone is out there just filling charts with lines and indicators. By the time they are all done, you can't even recognize what chart they are looking at and it's even more challenging to guess what they are trying to show you.

I've been trading professionally for 20 years and I have yet to see the benefits of using technical analysis like Fibinocci Sequences, Ichimoku Cloud or Long-legged Doji.

Instead of using these tools, I've had great success keeping it simple. I use simple technical analysis like the 100 and 200 period moving averages and looking for great stories… GREAT REASONS to get long or short a stock.

Let's take a look at this simple chart of the S&P. We'll draw a single line; our “Line in the sand” and it will be what we base our bullish or bearish bias on.

Have a look at this quick video: